Competition Commission of India imposes Rs 87 crore fine on Hyundai India

The fine is equivalent to 0.3 percent of Hyundai India's average turnover in the last three years.

By:Updated: June 15, 2017 12:37:34 PM

For unfair business practices on providing discounts on its cars, Hyundai Motor India has been imposed a fine of Rs 87 crore by Competition Commission of India. Also, the regulator has also passed a ‘cease-and-desist’ order against the South Korean carmaker. In addition, CCI has also penalised the company for making arrangements with dealers which resulted in a resale price maintenance by maintaining by way of monitoring permissible discount levels. The arrangements were done through the discount control mechanism for non-compliance of the discount scheme.

Competition Commission stated, “Such conduct pertains to and emanates out of the sale of motor vehicles. Hence, for the purposes of determining the relevant turnover for this infringement, revenue from the sale of motor vehicles alone has to be taken into account. Hyundai has direct control mechanism through which they the dealers can give a discount to an allowable range not beyond that range.”
The fine is equivalent to 0.3 percent of Hyundai India’s average turnover in the last three years. CCI has also said that Hyundai has also violated the competition law which resulted in resale price maintenance and penalising them of use of non-recommended lubricants and oils.

Hyundai said in a statement, “We are really surprised with this order. We are studying the order in detail and will take the necessary course of action to challenge the order at an appropriate level to protect the interest of our customers and channel partners by abiding (with) all the laws of the land.


Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Latest Auto News